How You Can Take Advantage of Your Super to Provide you a Better Retirement
- Have you realized you are loosing money by not taking control of your super funds?
- If you have not taken control, then you are losing an additional $2 for every $1 that would otherwise be available to you in your retirement.
- To retire on $40,000 per year and to live for 20 years in retirement you will require a balance of $800,000 in your super?
Do not miss out by using your super as a deposit to buy an investment property that will assist in securing your future in retirement?
The Government has officially announced that superannuation funds can now borrow to buy investment properties. This means that everyday Australians can now simply and easily obtain security for their family’s future by using their Superannuation as a deposit and leverage their Super Funds into an investment property. You can access and take control of your super to make the deposit on an investment property and create wealth at an even faster pace than non-super property investors.
- Use your Super as a Deposit: Accrued super balances can be used to make a deposit to buy an investment property.
- Gearing in Super: Compliant Superannuation funds are allowed to borrow funds from a lender based on legislation passed in September 2007. We are able to demonstrate to you the differences and the most suitable and easy solution for your particular needs. Whilst providing access to an appropriate lender who completely understands the Superannuation guide lines.
- Borrow the Balance from the Bank: There are a number of financial institutions keen to lend to Self Managed Super Funds money against bricks and mortar. The Super Fund will be able to borrow up to 70% of the property purchase price. The leverage provided by such a move is $3 for every $1 in the super Fund subject to a minimum balance and depending on your particular circumstances. No other investment vehicle provides such leverage
- Property Only – No other Security: By law the lender will provide the Self Managed Super Fund with a property investment loan on a limited recourse basis. This means the investment property used as security for the loan is only at risk from the bank and no other assets held within the Self Managed Super Fund.
- Most Powerful Wealth Creation Vehicle: Is created by investing in positively geared property and coupling it with compulsory super contributions paid by your employer, together with salary sacrifice opportunities and a significantly low taxation regime. The tax on the rental income is only 15% and with the property depreciation schedules allowed by the ATO you can potentially do away with taxation in the Super Fund altogether. So, potentially with very little effort or additional expense on your part you can accumulate valuable property investments by establishing a Self Managed Super Fund and secure your retirement funds.
- Tax Free Income for Life: At retirement all income from your property wealth held in super becomes tax free. That is zero (0%), with no more tax to be paid. As stated above your investment is positively geared and your Super Fund will be enjoying strong passive income streams. The property can be sold at any time if the market conditions are favourable.
- Get the right Structure: Property investment in Super requires a specific structure with a Self Managed Fund to be set up, so it’s important that you are guided by an experienced professional to show it all comes together with a minimum of fuss
- Australia’s Ultimate Tax Haven: Not only is the rent received from the investment taxed at a reduced rate of 15% during the accumulation phase and zero (0%) when you retire. In the event the Super Fund decided to sell the property prior to retirement the Super Fund would be subject to a 10% capital gains tax. If the property is sold in during the retirement phase then there is “NO CAPITAL GAINS TAX”
- Is Australia a Tax Haven? YES! For those well informed enough to take advantage of the Super Rules. Come join the million or so Australians who already know how to optimize their superannuation to personally maximize and secure their future in retirement.
Attend our upcoming Self managed super fund seminar “How to use your super to invest in property“